ForumsManaging Employees and HR

Good point. California Supreme Court ruled last year (8/7/2008) that "post-employment restrictions on an individual's ability to solicit a former employer's customers are invalid under Section 16600 of California Business and Professions Code."

So to clarify: If Glendagax decides to put the non-solicitation agreement in place (which I still highly recommend), it should be for the duration of employment only. I would think that given his current employee issues, it would still be beneficial.

Sorry! that site is www.prepaidlegal.com/hub/mjdistri

Hello,

In the future, I would advises putting your employees under a contract that states a non-solicitation/non-compete clause.
This will basically state he can't go after your clients or hire your employees. In addition, put him under a Non disclosure agreement.
This mostly acts as a deterrent.
Unfortunately, in California this is difficult to enforce by law.

Here is an example:
Non-Solicitation/Non-Compete: During the term of this agreement and for a period of 2 years subsequent to the termination of this agreement, employee shall not, without the prior consent of Company X, directly, indirectly, or through any other party solicit business from or perform services for any direct or indirect Company X customer or any other prospective Company X customer whom employee had any contact with or exposure to at any time during the term of this agreement."

Here is another potential solution.
1. Definitely fire this employee. This is a very disloyal act.
2. Check in with all your clients regularly. Clients will look at this as an incentive.
3. Make sure your customers are happy with the service at the end of the project.
4. Coincides with 3. Always request feedback from your clients and employees in person at the end of a project. Take note of their verbal and physical response.

This can help you refine your services and build the respect from your employees.

Hi. You are getting great advice and let me just throw my two cents in.
1. Document any FACTUAL information you have about his performance. If you have to justify why you let him go rather than the other person, this will help.
2. It sounds like you can justify letting him go as a position elimination situation because of slow business. So you are reducing your workforce by one person.
3. California has the most laws to protect people, so I agree that checking with an employment attorney is key.

In the future when business is better and you are hiring again (I am an optimist!), make sure you have each employee sign an "at will" agreement when you hire them so it will be easier to let them go when you have to. Also, make sure you do performance reviews annually so you have documentation of good and poor performance. It is imperative that you give your employees feedback on a regular basis. If you have concerns about confrontation, work with someone who can help you deal with those issues more assertively and with more comfort.

Best of luck with your business.